Mobile users face higher costs under new budget for FY25

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Mobile users face higher costs under new budget for FY25

B Mirror Desk:


In the proposed budget for the fiscal year 2024-25, mobile users in Bangladesh are set to face higher costs for call rates, internet usage, and SIM cards. The government has raised supplementary duties in several areas, impacting the everyday expenses of consumers who rely on mobile phones for communication and internet access.

Higher call and internet charges

Customers currently pay 15% VAT and 15% supplementary duty on mobile call rates. Under the new budget, this supplementary duty will increase by 5%, and a 1% surcharge will be introduced. As a result, on a Tk 100 recharge, customers will now only be able to use Tk 69.35 for calls after taxes and duties, compared to Tk 73 previously.

Similarly, internet usage on mobile phones will also become more expensive. The supplementary duty on internet services is being increased by 5%, along with the existing 15% VAT and 1% surcharge. This means that for a Tk 100 internet package, users will have to pay Tk 30.65 in taxes, leaving them with Tk 69.35 for actual usage, down from Tk 73.

SIM cards to cost more

The budget also proposes a hike in the tax on SIM cards. The tax on purchasing a SIM card from any mobile operator will rise from Tk 200 to Tk 300. This increase will directly impact customers who need to buy new SIM cards, adding to their overall communication costs.

Support for domestic mobile production

Despite the increased costs for mobile services, the budget continues to support local mobile phone manufacturers. The duty-free import facility for materials used in the production of mobile phones will remain in place until June 30, 2026, extended from the current deadline of June 30, 2024. This measure aims to bolster domestic manufacturing, with 17 companies currently producing mobile phones in Bangladesh, meeting approximately 90% of the country’s demand.

Yasir Monon
Yasir Mononhttp://www.yasirmonon.com
News Editor, Business Mirror

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